Financial Education Center

Surviving a Layoff 

• The unemployment rate continues to rise in North Carolina and nationally. There have been significant layoffs across many industries and many people are facing the tough reality of receiving notice that they are being laid off. Here are some practical tips, things to remember and resources to help ensure you take the necessary steps to get back on your feet.
• You are not alone and there are solutions.
• Discuss the situation with your family. Discussing creative ways to reduce your spending is important so your spouse and children take ownership in finding a solution.
• Review your financial situation. When you have experienced a job loss, it is important to make some significant but temporary changes.  Take a look at things you normally consider a necessity and see if they're not luxuries.
• Meet with your company’s HR representative to make sure you know all your options. Some questions you may want to ask are:
  • Will you receive severance pay?
  • Will you receive payment for unused vacation or personal days?
  • What information will you need to roll over your 401k plan?
  • Are you vested in your pension plan (if applicable)?
  • How do you continue insurance benefits using COBRA?
  • Does your company provide any outplacement services to aid in your job search?
• File for unemployment. The North Carolina Employment Security Commission provides three methods for individuals to file a claim for unemployment insurance benefits. Please visit www.ncesc.com for information.
• Reassess your financial situation.  You now have a new set of rules for your budget to consider and may to explore other options or counseling services.

Finding a Job

• The current economy has made finding a job difficult, but not impossible. Here are a few tips to consider when conducting your job search.
• Update your resume. It is imperative that you stand out among the pool of qualified candidates. 
• Consider a career change. Consider broadening the scope of your search and utilize career counselors or even online assessments to determine what fields may be of interest to you.
• Mobilize your resources. Consider enlisting the help of others by creating a personal board of directors to assist with everything from career goals to interviewing skills.
• Invest in yourself.  When you’ve identified a potential career path, evaluate your current skill set, identify any areas you’re lacking and research opportunities to improve those areas.
• Be creative in your job search. Be willing to think creatively and inquire with companies you would like to work for that might not advertise openings.  Use a company’s website to search career opportunities rather than relying solely on search engines.
• Make it a job.  Don’t allow yourself the luxury of pursuing a new position casually; rather, treat your search as a job in itself. Remember to keep receipts for anything purchased that can be attributed to your job search – in many cases these can be deducted from your taxes.
• Prepare your interview skills.  Not only is it important to consider how you will respond to interview questions, it is equally important to sharpen your conversational skills.

North Carolina Employment Security Commission - www.ncesc.com

Office of State Personnel – www.osp.state.nc.us

Google Job Search Directory - http://directory.google.com/Top/Business/Employment/Job_Search

Triangle Job Search – www.triangle.com

North Carolina Careers.org - http://north-carolina.careers.org

Budgeting in Financial Crisis

• Make a commitment to creating, reviewing and sticking to your budget.
• Start by cutting small expenses that do not impact your life greatly (magazine subscriptions, extras on phone or cable services, online subscriptions).
• Take a look at your entertainment expenses. Reduce the number of evenings out or extravagant expenses.
• Cut down on transportation expenses. Look into alternate forms such as public transportation, car-pooling or riding a bike.
• Trim your grocery bill. Take advantages of coupons and special offers and consider buying store brand rather than name brand items.
• Save on your utility bills by making sure you turn things off. Consider investing in items such as programmable thermostats or hot water heater timers.

Create an Emergency Fund

• Before you find yourself in a financial crisis, save some money every month in an emergency fund. Most financial experts recommend that you have six months of expenses set aside in case you are disabled or laid off. You don’t need to create an emergency fund all at once or panic if you don’t have one in place. But you should designate an account that will serve as an emergency fund and begin to put money in it. Even if you only budget $10 per month, it’s a good way to start.

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